Liquidation Cycles and Market Adjustment
ZEC moved through alternating liquidation waves from late October into early December. The chart showed long and short liquidations appearing in close sequence as traders adjusted to changing price conditions. Early November remained relatively steady before volatility expanded sharply.
A large spike in short liquidations on November 7 pushed price higher after bearish positions unwound. This created an early reversal signal during a period of uneven trading flows. The move pointed to the sensitivity of price action during liquidation-heavy phases.
By November 19, ZEC recorded its strongest short-side liquidation event as price moved toward the mid-$600 range. This cleared stretched positions and reset the structure. The following sessions carried a more balanced liquidation pattern until activity narrowed again in early December.
Support Reaction Backed by Tweeted Observation
The reaction at support became clearer when Nebraskangooner shared an assessment noting that volume at the lower range signaled a shift. He pointed to multiple long lower wicks forming near the mid-$300 zone, showing absorption as buyers entered while broader momentum trended downward.
His observation emphasized a strong volume cluster printed as ZEC stabilized at support. This was one of the largest participation spikes in weeks, suggesting active buyers taking positions as liquidity deepened. The shift helped form the base of the rebound that followed.
A bullish candle then reversed the previous decline. Although short-term EMAs still angled downward, the structure displayed a move from exhaustion to renewed initiative. This marked the start of a controlled reversion from the demand zone.
Current ZEC Price and Key Areas to Monitor
ZEC trades at $391.74, at the time of writing, recording a 7.69% daily gain while showing a 17.01% decline across the week. Liquidation spikes have narrowed as leverage reset on both sides. This transition created a steadier backdrop during early December.
The neutral balance between long and short liquidations suggests traders reduced exposure after weeks of unwinding. Compression near the mid-$300 range formed a stable base as volatility cooled.
The next evaluation area sits around the low-$400 zone where moving averages converge. Market behavior there may determine whether the recent recovery continues or enters consolidation after the support-driven move.